Investing.com — Gold prices fell in Asian trade on Monday, weighed down by a stronger dollar after U.S. President-elect Donald Trump threatened to impose steep tariffs on the BRICS group.
Demand for safe-haven gold was also hampered by signs that the ceasefire between Israel and Hezbollah appears to be holding, although rising tensions between Russia and Ukraine continued some safe-haven gold buying. .
By 11:07 pm ET (04:07 GMT), the February deadline was down 1.1% at $2,652.11 an ounce.
US dollar strengthens due to President Trump's tariffs, threat of gold pressure
President Trump has threatened to impose “100% tariffs” on the BRICS bloc and warned them not to seek alternatives to the dollar.
His threats have weakened the region's currencies and boosted the dollar, as traders fear further U.S. protectionism under Trump. The president-elect last week threatened to impose additional tariffs on China, Canada and Mexico, which could reignite a global trade war.
President Trump's threats pushed up prices, weighing on the overall metals market. Uncertainty about higher long-term inflation under the Trump administration, which could mean continued rate increases, also spooked metals markets.
Other precious metals fell. It fell 0.7% to $945.90 an ounce and fell 1.5% to $30.648 an ounce.
Copper prices fall due to tariffs and dollar strength, offsetting China PMI
Among industrial metals, copper prices fell on Monday as concerns about additional U.S. tariffs and a stronger dollar largely offset positive signals from China, the largest copper importer.
The benchmark price on the London Metal Exchange fell 0.5% to $8,976.50 a tonne, while March fell 0.7% to $4.1145 a tonne.
Manufacturing activity in China, the world's biggest copper importer, rose more than expected in November, purchasing managers' index data shows.
The speculation comes as the Chinese government has launched a flurry of aggressive economic stimulus measures since late September aimed at boosting economic growth.
Although the measures appeared to have some success, markets feared further economic headwinds from the trade war with the US.
Traders are also looking forward to further stimulus from two key political conferences scheduled to be held in late December.
